Question

___________ is one country’s ability to produce more of a given product than another country.

Answer 1

In this case,the answer would be Absolute Advantage.

Explanation:

• Absolute Advantage is one of the relevant concepts in the study of International Trade which was first proposed by Economist Adam Smith in his publication "Wealth of the Nation".
• The concept of Absolute Advantage basically refers to the higher ability of one country to produce any good,commodity or service compared to any country given the relative availability and productivity of labor input or endowment in respective countries.
• Hence,labor availability and productivity or efficiency level is the main driving essence or component of absolute advantage between various countries.The countries with higher and more efficient or productive labor or work force will have absolute advantage in the production of goods and services in comparison to other nations and can therefore,achieve higher economic growth and progress compared to their counterparts or competitors in the global market.
• Therefore,concept of absolute advantage is also evidently a criteria or parameter to define the diversity in economic growth between various countries in the world.